Jennifer · Crafty Chic Designs · Millsboro, DE
Jennifer asked: “I am a home crafter. I sell custom-made shirts, sweatshirts, cups and tumblers, and home decor items. I sell on Facebook and my website. I have a home office and workshop in my basement.”
Hi Jennifer, Delaware has no statewide sales tax, so there is no state seller's permit; instead the state runs a business license based on gross receipts, which is the registration you need for Crafty Chic Designs. No resale certificate is needed in Delaware, though suppliers elsewhere may ask for documentation. A basement workshop may also bring local home occupation rules.
Short answer: DE Wholesale License: a custom shirts, cups, and home decor business in Millsboro typically needs a federal tax ID number (EIN) and a local business license, with an LLC and a DBA if you use a trade name.
No sales tax, but Delaware generally requires a business license, and wholesalers report gross receipts tax on their sales. No statewide sales tax; instead Delaware imposes a gross receipts tax on sellers, with wholesalers classified separately from retailers.
Industry code: NAICS 453998 (All Other Miscellaneous Store Retailers), 459999 under the 2022 update
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Kim · Kim Craft Store · Washington, PA
Kim told us: “I sell crafts and clothing on eBay.”
Hi Kim, eBay sales of crafts and clothing are taxable goods sales, so your Pennsylvania Sales, Use and Hotel Occupancy Tax License matters even for a home business. With it, suppliers will take the Form REV-1220 Pennsylvania Exemption Certificate when you buy materials or inventory for resale. A kitchen-table seller can start as a sole proprietor with an EIN, and Kim Craft Store would need a DBA.
Short answer: Wholesale License15301: in Pennsylvania, what most people call a wholesale license is the Sales, Use and Hotel Occupancy Tax License. With it, and a Form REV-1220 Pennsylvania Exemption Certificate for your suppliers, an online crafts and clothing business can buy inventory for resale without paying sales tax up front.
The Pennsylvania version of the seller's permit is the Sales, Use and Hotel Occupancy Tax License. Suppliers selling to you tax-free will ask for a Form REV-1220 Pennsylvania Exemption Certificate. Not a sales tax license. A business selling only to resellers applies for a wholesaler certificate instead; it cannot hold both. Pennsylvania issues a separate wholesaler certificate to businesses that sell only for resale; any retail selling requires the sales tax license instead.
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All Businesses Need a Millsboro Business License & a Trade Business Name ( Sussex County Trade Business Name required if using a trade name).
Retailers / Wholesalers, Need a Reseller Tax ID, & a Business License.
Employers Need a Federal Tax Id Number (EIN), a DE State Tax Id ( State EIN), & a Business License.
Corporations, & LLC Need a Federal Tax Id Number (EIN)& a Business License.
Partnerships Need a Federal Tax Id Number (EIN) & a Trade Business Name, but also need a Business License.
Sole Proprietors May Use a Federal Tax Id Number as a DE Business Tax ID but also need a Business License.
Instead of filing a Trade Business Name, You Can Incorporate in DE or form a(n) DE LLC & You Will Not Need To File A DBA
List of required licenses below include online as well as home or Amazon businesses.
1. Crafts The majority of starting businesses need a(n) , Millsboro business tax registration.
2. Crafts Businesses with an trade firm name other than the owner's legal name are required to get a(n) Sussex County DBA assumed business name certificate.
3. In DE you may also need a sales tax ID AKA seller's permit if you sell merchandise that is taxable. ( A.K.A DEseller's permit, state id, wholesale, resale, reseller certificate).
4. You will need a federal and a state EIN if you will hire employees. I.e., a DE Federal Tax ID Number and a(n) DE State Employer Tax Number.
5. Instead of filing a fictitious business name DBA Filing in Millsboro, Incorporate in DE or form a(n) LLC.